Kampala traders have ended their strike that started on Wednesday after meeting with government officials.
The chairman of Kampala Capital City Traders Association (KACITA), Mr Thadeaus Musoke, on Thursday evening said the traders can reopen their shops after the President committed to meet them.
The traders had announced the strike after accusing the President of not giving them an audience to address their demands regarding the Electronic Fiscal Receipting System being implemented by the Uganda Revenue Authority (URA).
But on Thursday, the Prime Minister, Robinah Nabbanja, Attorney General Kiryowa Kiwanuka and other officials met the KACITA leaders in a closed door meeting.
“During the meeting, the Prime Minister said the President wants to meet us in large numbers, not just as leaders, because we represent a large group. She said the President is still investigating,” Musoke told journalists.
“I wanted to use this opportunity to clarify what brought about the demonstration. It was the way the Minister of Kampala handled the communication. She sent us just a voice note, as if she were communicating with a boyfriend, which is inappropriate, given that traders are major stakeholders in the economy of this country,” he added.
Mr Musoke said the traders want to meet President Museveni over their demands such as suspending EFRIS for at least one year and immediate removal of foreigners from running retail shops downtown and elsewhere.
“We caution all traders to collaborate because these taxes are affecting us all. We announced a strike; however, most of the shops closed, including mine, but some of you opened. What do you want us to do?” he said.
President Museveni while meeting the traders at Kololo in April ordered URA to waive EFRIS penalties that primarily impacted traders from Kikuubo and the Central Business District (CBD) who were new to the technology.
This came after the traders went on strike, voicing multiple concerns, such as the need to suspend EFRIS and the need to increase the annual turnover threshold for enrollment from Shs150 million to at least Shs1bn as some of the reasons for the protest.
They also argued that the current 18% VAT, applied repeatedly throughout transactions, results in double taxation, diminishing their competitiveness especially relative to Kenya, where the VAT is set at 16%.
Mr Museveni had promised to meet the traders again in July, which he did not do leading to the strike
